Student Loans, Bankruptcy and Hardship Provision

Student Loans, Bankruptcy and Hardship ProvisionStudent Loans, Bankruptcy and Hardship Provision

Help! I am not able to pay back my student loans. I continue to apply for Repayment Assistance but I have been unable to start paying back my loans for over five years now. Do I have to wait two more years to declare bankruptcy? Will my student loan be included in the bankruptcy at that time?

Student loans are not usually included in your bankruptcy until seven years after full time studies and the end date is determined by your academic institution. However, after five years of full time studies and extreme hardship you may declare bankruptcy and apply for a “Hardship Provision”. If the courts accept your application, your bankruptcy will include your student loans after five years instead of seven.

In order to decide, the courts will look at various factors:

1. How did you use your student loan?

2. What efforts did you make to graduate from the program your student loan funded?

3. What efforts did you make over the years to repay your loan?  Such as applying for Repayment Assistance Plan

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.  


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